The Difference Between the Amount Consumers Would Be Willing to Pay

question 50

Multiple Choice

The difference between the amount consumers would be willing to pay and the amount they actually pay for a good is called

• A) price elasticity of demand.
• B) consumer surplus.
• C) the substitution effect.
• D) income elasticity of demand.

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Definitions:

Memo

A short, informal written communication.

Communication

The process of exchanging information, ideas, and feelings between individuals or groups, through various means, verbal or nonverbal.

Goodwill

A positive and supportive attitude towards others, often reflecting a willingness to foster mutual respect and understanding.

Sales Proposal

A document intended to persuade a possible client of his or her need for your product or service.